Wilckens, Sebastian (contributor) - 2007
positive.
6
variable τ∗. As a consequence each country is vulnerable in its export sector, while it can
harm the other country … two countries (Home and Foreign) and three
goods (x, y and z), which allows for different country or market sizes. The … underlying utility
functions are assumed to be quasilinear in both countries: U[x,y,z] = z + ux[x] + uy[y].
While ux[·] and uy …